McGuinty Government Invests In Life Sciences Innovation

Archived Release

McGuinty Government Invests In Life Sciences Innovation

First-In-World Production Of Cattle Vaccine Will Create Jobs, Protect Environment, Enhance Food Safety BELLEVILLE, ON, Dec. 18 - The McGuinty government is investing $10 million in Bioniche Life Sciences Inc.'s expansion of its Belleville facility to a state-of-the-art vaccine manufacturing plant, Sandra Pupatello, Minister of Economic Development and Trade announced today with Leona Dombrowsky, Minister of Agriculture, Food and Rural Affairs. "We're celebrating another first for Ontario," said Pupatello. "This investment will help Bioniche Life Sciences become the first company in the world to produce its unique cattle vaccine and deliver it to national and international markets. This is a great success story for Bioniche, and is another major win for Ontario's life sciences sector." Bioniche Life Sciences Inc.'s E. coli vaccine prevents the colonization of the bacteria in the digestive system of cattle and substantially reduces the amount of E. coli shed in the environment through waste, potentially reducing the contamination of water supplies and commercially sold beef. The company will invest $107 million to expand its Belleville facility to manufacture its bovine E. coli cattle vaccine and other animal vaccines. The new facility will be built to handle highly infectious organisms, such as avian influenza, and have the capacity to increase production of vaccines in times of emergency. "We can't eliminate infectious bacteria from our environment entirely, but we can help reduce the harm that E. coli O157:H7 causes to people's health and Ontario's food industry," said Graeme McRae, President and CEO of Bioniche Life Sciences Inc. "We are the first company in the world to produce and distribute this vaccine, and manufacturing it in large scale wouldn't have been possible without the support from the Ontario government." "Today's announcement will help Bioniche bring animal-vaccine expertise to Ontario," said Leona Dombrowsky, Minister of Agriculture, Food and Rural Affairs. "That is good news for our agri-food industry, for our economy, and for our environment." The $10 million Bioniche Life Sciences Inc. investment is provided under the Ontario government's Advanced Manufacturing Investment Strategy (AMIS). The $500-million strategy provides repayable loans, interest free for up to five years, to support investments in technology and innovation. The innovative projects supported by this strategy will generate more than $720 million in new investment and support the creation or retention of about 3,500 jobs. The government is now accepting proposals for AMIS round five, with a submission deadline of February 14, 2008. For eligibility requirements and an application package visit www.ontariocanada.com (click on the "Programs and Services" link). AMIS is part of the Ontario government's manufacturing response and competitiveness strategy. Key initiatives of the strategy include: - Next Generation Jobs Fund - A $1.15 billion fund aimed at creating high-value jobs, reducing greenhouse gases and spurring significant new investment in high potential areas of Ontario's economy including clean automotive, environmental technologies, biotech, ICT and digital media - Ontario Automotive Investment Strategy - A $500 million initiative that has leveraged more than $7 billion in new investment and created thousands of high-value jobs in Ontario's auto sector - Eliminating the Capital Tax on January, 2008 for corporations primarily engaged in manufacturing and resource activities; providing a 21 per cent Capital Tax rate cut for all businesses retroactive to January 1, 2007, on the way to full elimination in 2010; and increasing the small business deduction threshold to $500,000 from $400,000 - retroactive to January 1, 2007. Disponible en français www.ontariocanada.com INNOVATION KEY TO FUTURE OF ONTARIO MANUFACTURING Contact Info Ontario's manufacturing sector Manufacturing underpins the provincial economy and employs about one million people, representing some 16 per cent of Ontario's total employment. In fact, among North American jurisdictions, Ontario is the second largest employer in the manufacturing sector - only California has more manufacturing employees. The Canadian Manufacturers and Exporters estimate that every $1 of manufacturing output generates $3 in total economic activity. Domestic manufacturers face challenges stemming from a global industry restructuring and increased competition from low-cost jurisdictions such as China and India. Investments in research and development, advanced technology and innovation are considered essential for Ontario manufacturers to compete in this environment and secure the sector's long-term prosperity. Advanced Manufacturing Investment Strategy The Advanced Manufacturing Investment Strategy was launched in December 2005 to encourage companies to invest in leading-edge technologies and processes that will increase productivity and competitiveness. The $500-million strategy stimulates private sector investment by offering loans, which are interest-free for up to five years, covering up to 10 per cent of eligible project costs, to a maximum of $10 million per project. As part of the 2007 Ontario Budget, Finance Minister Greg Sorbara announced reduced project thresholds of either 100 jobs created/retained or $25 million invested to enable even more companies to benefit from the program. The program is open to all manufacturing sectors and focuses on innovation, use of advanced technology or materials, research and development, waste reduction and energy conservation. The government is now accepting proposals for AMIS round five, with a submission deadline of February 14, 2008. For eligibility requirements and an application package visit www.ontariocanada.com (click on the "Programs and Services" link). The projects announced so far under the strategy will generate more than $720 million in new investment and support the creation or retention of about 3,500 jobs, over a five-year period. AMIS projects include: - Bioniche Life Sciences Inc., Belleville (December 18, 2007) - Plant expansion to support the commercial production of its bovine E. coli O157:H7 vaccine, which will bring innovation-driven high technology animal vaccine manufacturing expertise to Ontario. A loan of million supports a total project investment of $107 million. - Dofasco, Hamilton (August 24, 2007) - Upgrading to pulverized coal injection (PCI), which will replace coke and oil during blast furnace carbon input. PCI will reduce production costs and increase competitiveness. A loan of $6.05 million supports a total project investment of $60.5 million. - Toyota Boshoku, Woodstock (August 22, 2007) - Construction of a new plant to manufacture front and rear seats, interior door trim, carpet and headliners for Toyota Motor Manufacturing's plant in Woodstock. A loan of $8.7 million supports a total project investment of $87.3 million. - Ferrero Canada Ltd., Brantford (August 21, 2007) - Creating a Confectionary Centre of Excellence by expanding its production capacity and investing in leading technologies and processes new to North America. A loan of $5.5 million supports a total project investment of $55 million. - Toyotetsu Canada Inc., Simcoe (August 7, 2007) - Construction of a new assembly plant to stamp, weld and assemble automotive parts for Toyota Motor Manufacturing plants in Cambridge and Woodstock. A loan of $7.15 million supports a total project investment of $71.5 million. - Skyjack Inc., Guelph (May 14, 2007) - Creation of a Centre of Excellence to facilitate industrial research and development, prototyping, testing and commercialization of new aerial work platforms and materials handling equipment. A loan of $2.48 million supports a total project investment of $24.79 million. - Roxul Inc., Milton (March 15, 2007) - Plant expansion and development of new commercial, industrial and residential insulation products that use recycled scrap material from the steel and construction industries. A loan of $10 million supports a total project investment of $103.7 million. - Koolatron Corporation, Brantford (March 7, 2007) - Development of new products, including a large mobile cooler and cordless mosquito trap, using energy-efficient thermoelectric power. A loan of $2.34 million supports a total investment of $23.4 million. - Flakeboard Company, Sault Ste. Marie (March 1, 2007) - Development of new manufacturing processes and commercial applications for wood- alternative materials used in kitchen cabinets and furniture. A loan of $1.6 million supports a total investment of $16.0 million. - FAG Aerospace Inc., Stratford (February 20, 2007) - Research and development into improving the manufacture of precision bearings for the aerospace industry. A loan of $1.78 million supports a total investment of $17.8 million. - Diamond Aircraft Industries, London (June 23, 2006) - Development of a single-engine, five-seat jet aircraft. A loan of $10 million supports a total investment of $106.4 million. - Procter & Gamble Inc., Brockville (June 23, 2006) - Development of a new generation of quick-cleaning homecare products. A loan of $3 million supports a total investment of $30 million. Disponible en français www.ontariocanada.com For further information: Flavio Volpe, Minister Pupatello's Office, (416) 325-6907; Dave Bauer, Communications Branch, (416) 325-8773 HELP | CONTACT US | PRIVACY | IMPORTANT NOTICES © Queen's Printer for Ontario, 2008-2009 — Last Modified: February 15, 2009 For further information: Flavio Volpe, Minister Pupatello's Office, (416) 325-6907; Dave Bauer, Communications Branch, (416) 325-8773